American Forest & Paper Association Releases April 2018 Printing-Writing Paper Monthly Report

Label and Graphic Materials Segment: • Reported sales increased 11.8 percent. Sales ex. currency increased 4.2 percent; on an organic basis, sales grew 3.6 percent. Sales on an organic basis increased mid-single digits in Label and Packaging Materials and increased low-single digits in the combined Graphics and Reflective Solutions businesses. • Reported operating margin decreased 30 basis points to 12.3 percent, reflecting the impact of restructuring actions. Adjusted operating margin increased 20 basis points to 13.0 percent as the benefits of increased volume and productivity more than offset higher employee-related costs and the net impact of pricing and raw material costs. Click Read More below for additional information.

The Management Board of Arctic Paper has of February 22 and adopted a long-term financial target of EBIT 10 percent. The Management Board has also adopted a new strategy for its paper business – A Future in Paper - Strategic Agenda 2022 – showing the way to a growing and more profitable business. “Our mission is to offer a variety of superior, reliable and eco-friendly paper products and services which turn highly creative ideas into distinctive experiences and cater for the latest printing technologies. The new strategy is built on the ambition to reach a sustainably higher profitability, with a set target of EBIT 10 percent at the latest 2022”, comments Per Skoglund, CEO of Arctic Paper.

Ahlstrom-Munksjö has successfully completed the acquisition of a 60% stake in Chinese decor paper producer Minglian New Materials Technology Co., Ltd. and forms a joint venture which comprises a state-of-the-art plant in the city of Xingtai, Hebei Province, China. A non-binding letter of intent with the majority shareholders was initially signed in November 2019 but the Covid-19 pandemic delayed the negotiations and closing of the transaction. By combining Minglian with its existing Decor business, Ahlstrom-Munksjö creates a global leader in decor papers with improved cost competitiveness and strong presence in Europe, Americas and Asia. The business combination allows Ahlstrom-Munksjö to leverage its brand and capabilities in the large and growing high-end decor paper market in China. It will strengthen Ahlstrom-Munksjö’s ability to serve international customers both in the short- and long term. Ahlstrom-Munksjö will provide technical and operational expertise to Minglian and strengthen Minglian’s customer offering and service in the domestic medium and high-quality segments as well as adjacent export markets. Minglian provides cost competitive manufacturing to the combined Decor business platform and opportunities to optimize production and extend further decor paper manufacturing capacities.